By ITMS News on January 28th, 2010 4:30pm Eastern Time
Amazon.com (AMZN) reported fourth quarter earnings of 85 cents a share compared to 52 cents a share a year ago. Sales were $9.52 billion, up from $6.70 billion a year ago.
Read more…
Golds 6-day consolidation within the 1110-1080 region http://chart.ly/ddwwc7 carries the features of a bearish flag, which could trigger a break below the 1070 and onto 1040. Ever since failing to regain 1170, gold has languished at these levels while the US currency garnered fresh gains at the expense of deteriorating fundamentals in the Eurozone. Fridays US Q4 GDP is expected as high as 5.0%, which risks broadening the USD rally at the expense of Gold and silver.
Read more…
By Nicholas Santiago on January 28th, 2010 12:58pm Eastern Time
Recently Federal Reserve Bank Chairman Ben Bernanke has come under major pressure regarding his confirmation for a second term. Many supporters of the Chairman in Washington has stated that he has plenty of votes to be confirmed. His confirmation will require 60 votes from the Senate to overcome a threatened filibuster.
The Federal Reserve Bank Chairman has recently been endorsed by President Barak Obama, former President Bill Clinton, and former Federal Reserve Bank Chairman Paul Volker, and Alan Greenspan.
Senators from both parties have stated that they will not support the current Federal Reserve Bank Chairman. Democratic Senators Barbara Boxer(CA-D), Russ Feingold(WI-D), and Tom Harkin(IA-D) have all stated that they do not support Chairman Bernanke. While many Republicans such as John McCain(AZ-R), Jim DeMint(SC-R), David Vitter(LA-R), and independent Bernie Sanders(VT-I) have all gone on record against the confirmation and reappointment of the Fed Chairman Ben Bernanke.
Read more…
GBPUSD continues to demonstrate its robustness, with major pullbacks quickly reversing. GBP requires UK-negative news in order to generate marked declines. Falling stocks alone are no sufficient in triggering continued losses in GBP without disappointing UK news or economic data. $1.63 remains an important resistance (both 55 and 100-day MAs) which is unlikely to be broken ahead of tomorrow's USD GDP. USDCAD pauses for steam after rallying in 6 of the last 7 days, likely to find support at 1.0510. Tomorrow's release of CAN Nov GDP exp +0.3% from +0.2%. GOLD languishes at 1090, furthering its bearish flag and riasing outlook towards 1040. GRK-GER SPREAD now at 380 bps. Follow us on twitter fo rmore current insights & analysis http://twitter.com/alaidiRead more…
By InTheMoneyStocks.com on January 28th, 2010 11:59am Eastern Time
Major support levels revealed by InTheMoneyStocks.com. These key be the lows of the day! Get more by joining the Research Center or Intra Day Stock Chat!
Read more…
By TRADER X on January 28th, 2010 9:31am Eastern Time
Stock market futures soared last night when the President of the United States was giving his 'State of the Union' address around 9:00 pm EST. Please note that the U.S. Dollar index also began to decline at that very time. Once the dollar began to bounce the futures began to pull back in it's overnight gains. The weak dollar is very important for this market if it is to rally. Please remember a strong dollar puts pressure on commodities and inflationary stocks, therefore, making it difficult for the market to inflate.
Read more…
By IntheMoneyStocks on January 27th, 2010 10:42pm Eastern Time
Stock futures climbed on all the major indexes as the President of the United States delivered his first 'State of the Union' address of the year to Washington and the American people. The President did mention a tax on the large banks to repay the tax payers for the bank bailouts last year. However, he did not mention the new rules that would be implemented to the large banks that are similar to the former Glass Steagall Act of 1933.
The former Glass Steagall Act of 1933 was a legislative safeguard designed tp prevent commercial banks from engaging in investment banking activities; also authorized deposit insurance. The Glass Steagall Act of 1933 was repealed in 1999 in a bi-partisan vote by the Senate and the House of Representatives and signed into law under President Bill Clinton.
Read more…
By InTheMoneyStocks on January 27th, 2010 10:36pm Eastern Time
The markets staged a late rally after the Federal Reserve left interest rates unchanged. In addition, their comments alerted the markets that interest rates would remain at rock bottom levels for the foreseeable future. With interest rates low, stimulus money flowing, growth and the re-inflation rally continuing in the near term are likely. The markets surged into the close turning from a negative day into a solid positive day.
In addition, this evening President Obama gave his State of the Union address to the nation. This week Wall Street has had a tough time rallying due to worries about the tone of his speech. The worry stemmed from his latest comments on regulating banks and not allowing them to take risks. The risk companies like Goldman Sachs Group, Inc. (NYSE:GS) have taken and are directly responsible for the massive profits they have turned in the last year. Goldman Sachs reported that over six billion of their nine billion in revenue came from trading. President Obama has warned he wishes to curb risk by the banks. Those comments had been the catalyst to the latest dump on Wall Street.
The markets were on pins and needles as they awaited the State of the Union address this evening. Harsh comments directed towards Wall Street did not happen. In a relief push, the S&P futures are currently trading higher by 8.25 points.
Look for commodities like oil, United States Oil Fund LP (ETF) (NYSE:USO) and the markets, SPDR Trust, Series 1 (NYSE:SPY), PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQQ) to bounce tomorrow. The bounce could be short lived but enjoy the relief rally for now.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Read more…
By TRADER X on January 27th, 2010 3:52pm Eastern Time
The U.S. Dollar index has moved in an inverse lockstep relationship with the overall stock market. As the dollar declined intraday the SPDR Trust(NYSE:SPY) rallied higher. While the dollar is at new highs for 2009 the inverse moves seem to correlate very well with the SPY intraday. Often the institutional traders will have computer programs that will trade directly inverse to the dollar. It is important to remember the SPDR Trust(NYSE:SPY) is a basket of the S&P500.
Read more…
By Elliott Wave InternationalLike a spy who gets a burn notice, Federal Reserve Chairman Ben Bernanke has suddenly lost his support.Bernanke has gone from being Time magazine's Man of the Year in 2009 to … what? A Fed chairman embroiled in a controversial reconfirmation process before U.S. Congress. Why the sudden turnaround in his fortunes?Robert Prechter, president of the research firm Elliott Wave International, has written about the history of the Fed and its chairmen several times over the years, and his research shows that their popularity rises and falls with social mood, which is measured by the stock market. Here is a compilation of excerpts from Prechter's monthly market letter, The Elliott Wave Theorist, from 2005-2009 about the trouble he sees brewing at the Fed.Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you'll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.(November 2005) The Coming Change at the Fed | Public figureheads have a way of representing eras. This is certainly true of entertainment icons and politicians. The history of Fed chairmanship implies a similar tendency for changes of the guard to coincide with changes in social mood and therefore stock prices and the economy. [The chart below] depicts our social-mood meter—the DJIA—since the Fed's creation in 1913, marked with the reigning chairmen according to a list on the Fed's website.
(December 2009) Bernanke's greatest achievement was not the measly $1.25t. of debt that he arranged to have the Fed monetize; it was convincing the government to shift the burden of debt default from the speculators and creditors to taxpayers.(September 2009) Thanks to the Fed Chairman and two Treasury Secretaries, profligate bankers have been cashing checks off the Fed's and the Treasury's accounts, and the poor savers and taxpayers who fund these institutions are unaware that their personal bank accounts are being tapped by counterfeiters and thieves.That lack of awareness may soon change. Declining social mood is fueling the drive to expose the Fed's secrets. [Ed. note: Bloomberg News has sued the Fed under the Freedom of Information Act; Congressmen Ron Paul, R-Texas, and Barney Frank, D-Mass., are leading a charge to audit the Fed.] Exposing the Fed's secret deals could lead to scandal and the collapse of major money-center banks. But most important to our monetary outlook, it will serve to curb the Fed's reflation efforts. As I have written many times, deflation will win. Social mood is impulsive and cannot be stopped. The downtrend will claim its victims by whatever measures it must take to do so.(August 2009) On July 26, in a speech in Kansas City, MO, Fed Chairman Ben Bernanke declared, "I was not going to be the Federal Reserve chairman who presided over the second Great Depression." (WSJ, 7/27) We think this implication of a fait accompli is premature. Clearly, the Fed Chairman and the majority of economists are of the opinion that the worst of the financial crisis is past and that the Fed's unprecedented lending has averted deflation and depression. But wave 3 down in the stock market will dispel these illusions. Years ago, we suggested that Chairman Greenspan quit if he wanted to keep his lofty reputation. He didn't do it. Now Chairman Bernanke should consider this option.So will Bernanke serve a second term as Fed chairman? The January 2010 Elliott Wave Financial Forecast says, "Social mood is still too elevated to deny Bernanke reappointment as head of the Fed. ... But rising political tension confirms that his next term will be far more stressful than his first."Can the Fed Stop Deflation? Robert Prechter answers this all-important question in his Free Deflation Survival Guide. The guide gives you a 60-page ebook that will help you understand deflation and its effects on society; you'll even learn how to survive and prosper in such an environment. Download Your Free 60-Page Deflation eBook Here.A link to a lensRobert Prechter, Chartered Market Technician, is the founder and CEO of Elliott Wave International, author of Wall Street best-sellers Conquer the Crash and Elliott Wave Principle and editor of The Elliott Wave Theorist monthly market letter since 1979.Read more…
By TRADER X on January 27th, 2010 9:34am Eastern Time
The DXY(U.S. Dollar index) is slightly higher to start the morning. The higher dollar has recently put pressure on most commodities and inflationary stocks and vice versa when the dollar falls. Today is the Federal Reserve Bank meeting on rates and policy at 2:15 pm EST, and President Obama's State of the Union address this evening. These comments may all have from both parties may effect the dollar in the short term.
Read more…
By Nicholas Santiago on January 27th, 2010 10:46am Eastern Time
What a day in the market! This morning Treasury Secretary Tim Geithner and former Treasury Secretary Hank Paulson will be on the hot seat regarding the bailout of American International Group (NYSE:AIG). The members on Capital Hill are wondering and asking why AIG was bailed out? The perception from many in Washington was that AIG was bailed out in order to keep Goldman Sachs (NYSE:GS) solvent as they paid Goldman Sachs back 100 cents on the dollar while the American tax payer paid the bill again. This hearing should be something to see today, even if nothing else comes from it.
Later this afternoon the Federal Reserve Bank will announce the Fed funds rate (overnight borrowing rate from the Federal Reserve Bank to the large major banks) and their opinion on the condition of the economy. Currently the overnight lending rate is at zero. This statement will be released at 2:15 pm EST and is usually a market moving event.
This evening at 9:00 pm EST President Obama will give his “State of the Union” address. One can only wonder if he will rescind or revise his recent comments about the banks that are too big to fail. He recently made a speech that implied he would reinstall a rule similar to the former Glass Steagall Act of 1933. Remember this rule was removed during the Clinton administration. The Glass Steagall Act of 1933 stated that banks could not invest or engage in investment banking activities and authorized deposit insurance. During the crisis in 2008 all of the major banks such as J.P. Morgan (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), and countless others have and still are engaged in hedge funds, proprietary trading, insurance products, and other investment vehicles prohibited in the original Glass Steagall Act of 1933.
This is certainly going to be a fun day on Wall Street. The markets have been weak since mid January and remain under pressure. However, technically speaking many stocks and indexes are near or at support in the near term. Enjoy the show as it should be quite entertaining.
Nicholas Santiago,
Chief Market Strategist
www.InTheMoneyStocks.comRead more…
By InTheMoneyStocks.com on January 27th, 2010 11:36am Eastern Time
As a Chief Market Strategist at InTheMoneyStocks I study the markets for close to 15 hours a day. Price, pattern and time are my holy book as I recognize master setups and alert my clients to them. Today I bring you a new call. I am giving oil an upside bias for the near term. Fundamentals along with technicals are telling me there will be a bounce. It looks like it already may have begun today.
The U.S. OIL FUND ETF (NYSEArca: USO) has sold off from my top call at $41.20. That sell off was harsh and beautiful taking the USO down to the 200ma on the daily chart. With the market correcting, and the dollar strong, people are wondering if oil is headed lower. Near term I say no. Oil will see a bounce off these levels and move higher to a target on the USO of $38.20. This is what is called a swing trade. A short term trade held over the course of a few days for profit.
My premium members received their alert this morning and were advised to look at not only USO but also Ultra DJ-AIG Crude Oil ProShares (NYSEArca: UCO). This is a 2x long ETF for oil. Generally speaking, you get 2x the risk but 2x the reward. In addition, Exxon Mobile Cp (NYSE: XOM) appears to be ready for a short term swing trade bounce as well off of the $65.00 level.
Based on key fundamental oversold conditions and major technical supports, I am issuing an upside bias alert on oil. Live, Learn, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Read more…
By InTheMoneyStocks.com on January 27th, 2010 12:00pm Eastern Time
On December 28th, 2009, I stuck my neck out on the line once again to call for a 10% or more correction on metal stocks like United States Steel Corporation (NYSE:X), Alcoa Inc. (NYSE:AA) and Century Aluminum Company (Nasdaq: CENX). Below is a chart listing the prices when the call went out.
Alert : 12/28/2009
U.S. Steel Corporation (NYSE:X) At $58.19
Alcoa Inc. (NYSE:AA) At $16.51
Century Aluminum Company (Nasdaq: CENX) At $16.90
As a Chief Market Strategist at InTheMoneyStocks it is my job to analyze and be ahead of the market in regards to moves up and down. As I gave an extreme downside bias of at least a 10% correction on these stocks analysts and traders alike were as bullish as can be. I pride myself on being on the front end of the curve and it allows me and my clients/subscribers to max out on profits. While everyone was bullish, my neck again went out on the line and the call was nailed. Below are the results as of today, January 27th, 2010.
Alert: Results To Extreme Downside Sell Bias Call
U.S. Steel Corporation (NYSE:X) now $46.30 (20.40% drop!)
Alcoa Inc. (NYSE:AA) now $13.13 (20.5% drop!)
Century Aluminum Company (Nasdaq: CENX) now $12.52 (25.92% drop!)
The correction I expected and alerted came to fruition giving huge profits. At this point I am studying the charts of U.S. Steel, Alcoa Inc. and Century Aluminum Co. to find an entry for a bounce.
Per this article I will give out one upside bias call on U.S. Steel (NYSE:X). Per this article, U.S Steel is trading at $46.50. At this point I am giving it an upside bias with a target back to $50.50. At that point I will re-evaluate.
Below is the old article making the downside call to give credence to what I have said.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Metal Stocks Poised For 10% Or More Correction In Early 2010 After Massive Runup
12.28.09
It has been a move for the history books. Stocks like United States Steel (NYSE: X), Alcoa Inc (NYSE: AA), Titanium Metals Corp (NYSE: TIE) and Century Aluminum Company (NasdaqGS: CENX) soaring into the end of 2009 like a rocket ship headed for the stars. Just in the last month or two, these metal stocks have ripped higher by 25 - 50%. It now looks like they are coming into massive resistance levels and I am issuing a red alert sell signal.
Based on valuations, growth projections and technical extensions above key levels, these stocks have been added to my red alert drop list. I expect them to see 10% or more corrections in the near term of January. Already today, United States Steel has started to form a daily bearish candle along with Alcoa Inc. U.S Steel has rocketed higher since the hit of the 200ma on November 3rd, 2009 at $34.00 to a high today of $58.19. It is far above the 20ma and after a four day surge, multiple indicators are showing a January or sooner correction coming. Look for price to fall back to the 20ma.
The same can be applied to all the other stocks listed. The extension moves they have had were due partly to short squeezes and partly to momentum runners as hedge fund and money managers looked to show these in their portfolios for year end statements. Come January or sooner, I am issuing a red alert sell signal on all these stocks. Be smart, learn the technicals, understand the fundamentals and go the opposite of the crowd. Learn, Live, Profit!
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
Read more…
State-of-the-Union-Address to Overshadow FOMC While much talk circulates around todays FOMC (19:15 GMT) and Thursdays US GDP report, I warn over todays State of the Union Address (21:00 EST; 02:00 GMT), in which President Obama will likely reiterate his pledge for restraining banks proprietary trading. Any more underlying tones of populism in the aftermath of last weeks Democractic loss in Massachusetts could cause trigger a negative reaction in Thursday Asian trading, before EU and US markets position for Thursdays US figures. GBPUSD remains capped at 1.6250s after weaker than exp CBI survey; while EURUSD unlikely to regain 1.4120-30 ahead of the FOMC survey. 1.4015 to hold for now until the FOMC.
Read more…
